Channel 4 staff morale is said to be at an all-time low
As media heavyweights hit out at London's Victoria & Albert Museum, which will celebrate Channel 4's 40th anniversary in November 2022, the atmosphere was so festive that a sitting cabinet minister led a rendition of «Happy Birthday».
Now, less than 18 months after that glitzy party — as BBC, ITV and Sky chiefs celebrate their rival's longevity — like many people over 40, Channel 4 has fallen into a midlife crisis that threatens its future.
Having successfully fought a rearguard action to avoid privatization by a Tory government with which it is often at odds, a collapse in advertising revenue has left the state-owned, commercially funded broadcaster exposed — and it fears another threat. Budgets are being slashed, many new commissions are being suspended and around 240 staff, around 15 per cent of the workforce, will be made redundant.
Meanwhile, independent production companies, on which Channel 4 depends as its programs cause riots and staff morale is at a record low. All this has left long-time chief executive Alex Mahon with a huge headache.
When Margaret Thatcher's first government created Channel 4, it sought to provide an alternative to the BBC and ITV duopoly. Early hits included the words and numbers quiz show Countdown, Phil Redmond's soap opera Brookside and Anneka Rice's madcap game show Treasure Hunt. There were also prestige dramas such as Alan Bleasdale's GBH, as well as a host of quality documentaries and feature programs such as On the Cutting Edge and Without Walls.
Alex Mahon, Channel 4 CEO Photo: Geoff Pugh
It later broke the mold for morning television with The Big Breakfast and became a first British television company, which focused on «Big Brother», based on the format of the Dutch reality show.
Just a year ago everything looked rosy. Last summer Channel 4 announced it would make £1.14 billion in revenue in 2022 and invest a record £713 million in UK content. Mahon, who has been chief executive since 2017, received a record £1.5 million for hitting her bonus targets. By contrast, BBC director general Tim Davie receives about a third of that amount.
There is a sense that these results, covering a year in which ministers unsuccessfully tried to sell Channel 4, did not reflect the reality it faces. Despite a decline in the advertising market of around 15 per cent, Channel 4 suffered more than ITV and Channel 5 audiences.
Domhnall Gleeson and Andrea Riseborough in Alice & Jack Credit: PBS
While rivals such as the BBC and ITV have attracted huge audiences in recent months with Traitors and Mr Bates Versus the Post Office respectively, Channel 4 has struggled to create new hits of its own. Recent flops include: Alice & Jack, a drama starring Hollywood actors Andrea Riseborough and Domnhall Gleeson, the live lunch show Steph's Packed Lunch, The Late Show with Mo Gilligan and The Rise and Fall, a reality show starring Greg James that is due was to be a response to the «Traitors». /p>
Many of the channel's biggest ongoing programmes, such as Grand Designs, Gogglebox and 8 Out of 10 Cats, were created under the leadership of former program heads Kevin Lygo, now head of entertainment at ITV, and Jay Hunt, currently creative director of Apple in Europe. TV+. Two of the biggest, The Great British Bake Off and Taskmaster, were poached for big money from other broadcasters.
Channel 4's biggest recent successes have been Big Boys, Jack Rook's critically acclaimed university sitcom, and The Piano, starring Claudia Winkleman, which caught the attention of people who play musical instruments and was extended for another season.
“They are more exposed to the advertising market than others,” says Tom Harrington, head of television at media consultancy Enders Analysis. Advertising makes up about two-thirds of Channel 4's income. Much of the surplus it boasted less than two years ago has been spent, including £17 million on staff retention bonuses. “It was clear that the market was going to get more difficult,” adds Harrington. “Ironically, they are now letting a lot of these people go.” Senior panel members to leave in recent weeks include factual director Alf Laurie, Caroline Hollick, the Leeds-based drama director who presented the broadcaster I Am Ruth and It's a Sin, and youth and digital director Carl Warner. .
Much of the ire fell on the heads of Mahon and Ian Katz, the former Guardian deputy editor whom she appointed chief content officer shortly after her arrival. “Money issues aside, aside from the advertising downturn, not to mention the digital shift, decision-making leadership is a complete and utter crap show,” says an executive at a major production company who often works with Channel 4. «What you need because the channel is hits, to attract people to you, and after they come to you for one, they stay with you and watch another.»
Senior management gives a grim forecast. “In the short term there needs to be a change in leadership. In the long term, we are thinking about how Channel 4 will survive.”
Ian Katz, Director of Content, Channel 4 Photo: Matt Davis
In media circles, Katz has often been described as failing to consistently grow audiences, especially around entertainment programming since the launch of It's a Sin. «They are in a cultural and creative abyss from which there is no escape,» says the head of a rival TV company.
Those outside the broadcaster believe that its most senior people spend more time on the issue of ownership than on the content produced. “Everyone was obsessed with what was happening with privatization,” says a former board member. “They just don't seem to have a clue about programming. They look doomed if they don't wise up.”
Senior Channel 4 sources say the broadcaster's health is worse than many in the industry realise. They point to the fact that Married at First Sight became a huge streaming hit, The Jury: Murder Trial was the biggest new format launch in 10 years, as Benefit Street and Film4 won six Oscars in this month, and about 30% of its revenue comes from its digital platform — more than any other comparable channel in the world.
Jury: Murder Trial Credits: Channel 4
Channel 4 occupies a unique place in British broadcasting. Although the company is publicly owned, it is not funded by taxpayers and its mission is not to make a profit but to help independent, often small, manufacturing companies prosper. This has changed in the last 18 months as Channel 4 changed its payment terms so that production companies are increasingly being asked to fund their own programs up front and will only be paid once the show has aired. Many producers complain that the television company sits on finished programs so as not to pay early. Channel 4 bosses admit they have a «big recovery job» ahead of them to get back in producers' good books, but other broadcasters have also slowed their rollout.
«It's been difficult and we don't see a quick fix even if the advertising market recovers,» says John McVeigh, chief executive of manufacturers' trade body Pact. «We are not sure when Channel 4 will return to normal operations.»
The first signs of struggle came last spring when the broadcaster abruptly canceled a reboot of Four Weddings, a former reality show produced by Sky. Producers at MultiStory Media were reportedly «blindsided» by the move, which was announced belatedly. The production slowdown also means Derry Girls creator Lisa McGee has moved her new comedy thriller How to Heaven from Belfast from Channel 4 to Netflix.
Channel 4 hit «Derry Girls» Photo: Channel 4
Richard Osman, the former Pointless presenter who helped create Deal or No Deal, recently expressed concerns about the future of Channel 4 on his podcast The Rest is Entertainment. He says Channel 4 is getting the basics wrong. “They don't have a quiz and it's crazy. Every channel has a popular quiz show,” Osman said. “It's actually quite easy to run quizzes because people love quizzes. You get a great format, you get likes and boom, you're done. BBC Two's biggest shows are House of Games, Only Connect and University Challenge. They are worth nothing at all.”
He added: “People love them and they can do hundreds and hundreds of episodes. This is what you need on your channel to attract people day after day. A simple thing like that, and they don't have it.”
Channel 4 is also facing questions over its handling of a complaint about a “disturbing and serious” allegation against Russell Brand. One of the women who complained about the comedian, a former employee, told The Sunday Times over the weekend that the broadcaster's own investigation into the matter was «shambolic», «disempowering» and a «whitewash».
Russell Brand Credit: PA
Channel 4 said in response to the claims: “We remain committed to creating as complete a picture as possible of what what happened, help ensure that we have an industry that does not tolerate inappropriate behavior and listens to the people who bravely came forward.”
Amid all this, rumors continue to circulate in the media industry that Mahon is looking for a new job after seven years at the helm. She was said to be in the running to run French designer brand Chloe (she's already on the board of Chanel), but ultimately didn't get the job.
MPs on the House Culture Committee asked the question. Mahon about the rumors when she appeared before them in November. “I’ll stay as long as I’m involved in the business,” she said. «However, I don't think anyone will be in the Channel 4 business forever.»
How long she will remain relevant is anyone's guess.
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